WFRP has a number of limitations that make the eWeatherRisk solutions particularly attractive for prospective growers and their investors:
•Growers must comply with applicable state, tribal or federal regulations for hemp production and have a contract;
•Forced destruction of hemp containing > 0.3% THC on a dry weight basis will not be an insurable WFRP loss (adverse weather tends to increase THC levels);
•Hemp will not qualify for replant payments under WFRP, making excess precipitation protection essential for risk management purposes:
•WFRP insured revenue limitation of $8.5M is inadequate for many prospective insureds;
•Must provide 5 consecutive years of Schedule F’s or other farm tax forms;
•Must grow at least 3 commodities to qualify for 80% and 85% coverage levels, leaving a significant retained coverage gap;
•While WFRP claims are settled only after taxes are filed for the policy year, eWeatherRisk claim payments are released shortly after the relevant weather risk contract ends.